In an environment of plummeting oil prices, a large company has been willing to invest in a deepwater exploration block, pointing to the quality of the acreage and vindicating the company’s strategy to reduce risk and seek farm-down partners. We believe Ophir was tempted by the proximity of CI-513 to the Saphir discovery by Total in the adjacent block. Interpretation by APCL suggests that a number of similar prospects in the same play exist in CI-513.
More farm-downs expected over time
CI-513 is just one of 10 blocks that APCL currently holds. Of the remaining assets, we expect the industry to be most interested in the four Senegalese and Gambian blocks, which have been de-risked by the three successful wells drilled by Cairn/FAR in Senegal (including the successful appraisal well announced on 4 January 2016, which tested >8mboe/d) and the wells drilled by Kosmos offshore Mauritania. The APCL blocks allow for entry into an increasingly interesting area for any exploration player.
AOQ Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
